AMC Stock Price: Bearish Breakout Threatens the Bullish Case

AMC is one of the meme stocks that flourished in 2021. It is not about the main business’s ability to generate revenue but about the retail community’s interest in speculating on most popular stocks, such as the GME or the AMC.

The AMC stock price had a terrific run recently. In less than a month, the price increased sevenfold, in a combination of short-squeezing hedge funds and massive call options trading.

A recent article by the Wall Street Journal reveals that traders spent last week close to $12 billion on options contracts connected to the AMC stock price. That is a staggering amount, more than twice the amount spent on Tesla options, and dwarfing the interest in similar options on GameStop, BlackBerry, or Apple.

While the AMC stock price outperformed in June, the implied volatility declined when compared to February, the other month when retail traders took an interest in its stock price. From a technical perspective, the price action just broke below the main bullish trendline, putting pressure on bulls.

AMC Stock Price Technical Analysis

Bears may want to remain on the short side with a stop above $60 and a target in the $30 area. Bulls may want to buy a breakout above $60 with a stop at $50 and targeting a new all-time high.

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AMC Stock Price Prediction

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